PC2000_10 BUSINESS PLAN ./ Enero 2001 PDVSA • Dimension Dimension • Business Plan 2000-2009 Business Plan 2000-2009
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 1Enero 2001Enero 2001
PDVSA
• DimensionDimension
• Business Plan 2000-2009Business Plan 2000-2009
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 2
Overview
• PDVSA: a Global Energy Corporation
• Reserves (Oil and Gas)
• Production Capacity
• Refining Capacity
• Technology
• Green Performance
• Business Plan 2000-2009
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 3
A Global Energy Corporation - 1999
PRODUCTIONCAPACITY3.6 MMBD
PRODUCTIONCAPACITY3.6 MMBD
RESERVES OIL 77 Bn BLS GAS 147 TCF
RESERVES OIL 77 Bn BLS GAS 147 TCF
MARKETING4.5 MMBD
MARKETING4.5 MMBD
REFINING CAPACITY3.3 MMBD
REFINING CAPACITY3.3 MMBD
PETROCHEMICAL PROD.4.5 MMTON/YEAR
PETROCHEMICAL PROD.4.5 MMTON/YEAR
COAL PROD.6.4 MM TON/YEAR
COAL PROD.6.4 MM TON/YEAR
ORIMULSION PROD.4.8 MM TON/YEAR
ORIMULSION PROD.4.8 MM TON/YEAR
SALESBn $ 32.6
SALESBn $ 32.6
MMBD= Million Barrels / Day, MM ton= Million TonsTCF= Trillion Cubic FeetMMBD= Million Barrels / Day, MM ton= Million TonsTCF= Trillion Cubic Feet
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 4
ReservesR/P
1053 Bn BOE40 Years
World Proven Reserves
37 9.6
21 824
65
Ex- URSS
WesternEurope
81674
ME
Africa Asia
Australia7527
LatinAmerica
37
NorthAmerica
1543
137
Venezuela 43% of theAmericas
Source: BP Amoco 99
World
Oil
VENEZUELA: WORLD´s 6th LARGESTVENEZUELA: WORLD´s 6th LARGEST
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 5
Billion BarrelsBillion Barrels
Source : BP Amoco1999Source : BP Amoco1999
Proven Reserves
262
113 98 97 90 77
Saudi Arabia Irak UAE Iran VenezuelaKuwait
ORINOCO BELT, THE WORLD LARGEST BITUMEN RESERVOIR
ORINOCO BELT, THE WORLD LARGEST BITUMEN RESERVOIR
MACHETE
R í o O r i n o c o
MACHETEMACHETE ZUATAZUATAC. NEGROC. NEGRO
HAMACAHAMACA
T O T A L T O T A L
AVAILABLE RESOURCES
RECOVERABLE RESOURCES
AVAILABLE RESOURCES
RECOVERABLE RESOURCES
557
95
557
9587
18
87
18227
85
227
851360
272
1360
272
489
74
489
74
PRODUCED AT A RATE OF 10 MBD, RESOURCES WOULD LAST 50 YEARS PRODUCED AT A RATE OF 10 MBD, RESOURCES WOULD LAST 50 YEARS
Proven Reserves + Orinoco Belt
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 6
Billion BarrelsBillion Barrels
INCLUDING ORINOCO BELT, LARGEST LIQUID HYDROCARBON ACCUMULATION
262
113 98 97 9077
309
Source BP Amoco 1999Source BP Amoco 1999
Largest Liquid Hydrocarbon Accumulation
BITUMEN
Saudi Arabia Irak UAE Iran VenezuelaKuwait
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 7
MMBDMMBD
Largest Producers: 1999 Production Capacity
11
9,1
7,56,6
3,6 3,6 3,2
SAUDIARABIASAUDI
ARABIANORTH
SEANORTH
SEAUSAUSA RUSSIARUSSIA VENEZUELAVENEZUELAVENEZUELAVENEZUELAMEXICOMEXICO CHINACHINA
Source: EIA
Oil
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 8
World Leading Corporations
Source PIW. Dic - 1999Source PIW. Dic - 1999
Refining Capacity
MMBDMMBD
6,5
4,0
3,3 3,3 3,1
ROYALDUTCH/SHELL
EXXON/ MOBIL
PDVSA CHEVRON/TEXACO
BP / AMOCO
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 9
NOC’s
Source: PIW, Dic., 1999
ARAMCO(Saudi Arabia)
PDVSA INOC(Irak)
KPC(Kuwait)
PEMEX(Mexico)
PETROBRAS(Brazil)
Refining Capacity
MMBD
3.3
2.01.8 1.7
1.5
1.1
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 10
Ruhr Oel 50% (432)Germany (4 Ref.)
216
Nynas 50% (72)Sweden(2 ref./Belgium(1 ref.)/ United Kingdom 2ref.)
36
Lemont167
Paulsboro 84
Lake Charles320
Corpus Christi150
LCRC 41.25% (265)110
Savannah28Chalmette 50%
(184)92
St. Croix 50% (545)273
Sweeny (*)165
(*) 50 % share in deep conversion unit
Paraguaná Refining Complex 940
El Palito130
Pto.. La Cruz200
Bajo Grande15
San Roque5
Capacity (MMBD)Venezuela 1.3International 2.0
Venezuela
USA Capacity (*) : 1116 ThBD European Capacity: 252 ThBD
ISLA 335
Caribbean Capacity 608 ThBD
Refining Capacity
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 11
SwedenSwedenNorwayNorway
NynashamnNynashamn
GötenborgGötenborg
GelsenkirchenGelsenkirchenKarlsruheKarlsruhe
EasthamEastham
Dundee
IrelandIreland UKUK
SchwedtSchwedt
European Operations
NeustadtNeustadt
MarselleMarselle
TOTAL RUHR/NYNÄS: 504 Th BDPDVSA PARTICIPATION : 252 Th BDSUPPLY AGREEMENTS: 272 Th BD
TOTAL RUHR/NYNÄS: 504 Th BDPDVSA PARTICIPATION : 252 Th BDSUPPLY AGREEMENTS: 272 Th BD
WilhelnashavenWilhelnashavenAmberesAmberes
TriesteTrieste
RotterdamRotterdam
International downstream integration allows market access International downstream integration allows market access
Refining Capacity
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 12
PaulsboroPaulsboroPaulsboroPaulsboro
SavannahSavannahSavannahSavannah
Corpus ChristiCorpus ChristiCorpus ChristiCorpus ChristiLyondellLyondellLyondellLyondell
LakeLakeCharles Charles LakeLakeCharles Charles
CITGO
LemontLemontLemontLemont
CITGO - PDVMR
REFINING CAPACITY (MMBD) TOTAL/PDVSA:TERMINALS:SERVICE STATIONS:STORAGE CAPACITY (MILLION BLS):
REFINING CAPACITY (MMBD) TOTAL/PDVSA:TERMINALS:SERVICE STATIONS:STORAGE CAPACITY (MILLION BLS):
1363/11165915.07924
1363/11165915.07924
One of the largest retail networks One of the largest retail networks
Refining Capacity
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 13
Venezuela
Storage TerminalsTotal: 50.6 MMB
BOPEC, N.VBonaire (PDVSA)Cap.: 10.1 MMB
BORCOBahamas (PDVSA)
Cap.: 11 MMB
POINT FORTINTrinidad (leased)
Cap.: PDV: 650 ThB
STATIA TerminalSan Eustaquio (leased)
Cap.: PDV: 388 ThB
COTCuracao ( leased)Cap.: 14,5 MMB
EMMASTADCap.: 14,0 MMB
Overseas Storage Capacity
Strategic storage assures adequate distribution
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 14
231 9
18419
88
2003
Ex- URSSWestern Europe 274
1750
ME
Africa Asia
Australia
ReservesR/P
5170 TCF65 Years
361
101LatinAmerica
66
NorthAmerica
41
360
283
Venezuela28% of the Americas
Proven Reserves
Source: BP/AMOCO 00
Natural Gas
World
VENEZUELA: WORLD’s 8 th LARGESTVENEZUELA: WORLD’s 8 th LARGEST
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 15
Venezuela’s Gas Reserves / 1999
PROVENPROBABLE38
POSSIBLE
43
ASSOCIATED
NON- ASSOCIATED
64 %17 %
19 % 91%
9%
146
133
13
Natural Gas
Most of the reserves largely associated to oil
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 16
Creating value in all business activitiesCreating value to Venezuelan nationWin to win relationship with partners
Creating value in all business activitiesCreating value to Venezuelan nationWin to win relationship with partners
PDVSA Intevep as high tech product provider
INT-FCC-1®INT-FCC-1® SEDLA®SEDLA®
AQUACONVERSION®AQUACONVERSION®ISAL®ISAL®
GOV10/20®GOV10/20®
ORIMULSION®ORIMULSION®
WellTECH™WellTECH™
INPETUS™INPETUS™
ST-5®ST-5®
INT-SORB™INT-SORB™
CDInterol®CDInterol®
HHC®HHC® HDH+®HDH+®
INTEBIOS®INTEBIOS®
ULTRACLEAN™ULTRACLEAN™ H2OIL™H2OIL™
DISOL®DISOL®
BIORIZE®BIORIZE®
HOTLIFT™HOTLIFT™
MULTIGEL™MULTIGEL™
DETECTOIL™DETECTOIL™LITECEM™LITECEM™GREENOIL®GREENOIL®
BIODOIL®BIODOIL® SULTRAP®SULTRAP®
ISIS-INT®ISIS-INT®
ULTRAMIX®ULTRAMIX®THIXOGAS®THIXOGAS®INTOIL®INTOIL®
ORIMATITA®ORIMATITA®
LITEDEM®LITEDEM®
CARBOLIG®CARBOLIG®EVAEMP™EVAEMP™
Technology
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 17
SUPPLIER OF CLEAN PRODUCTS
ELIMINATION OF
LIABILITIES
COMMITTED AND
RESPONSIBLEEMPLOYEES
ACCOUNTABILITY THROUGH PERFORMANCE
INDICATORS ANDPREESTABLISHED GOALS
DEVELOPMENT AND APPLICATION OF TECHNOLOGY TOMINIMIZE RISKS
CONTRIBUTION TO MEET COMMUNITY
NEEDS ON ENVIRONMENT
CERTIFIED ENVIRONMENTAL
MANAGEMENT SYSTEMS
Green Performance
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 18
Corporate Strategy
• Focus on E&P, R&M with own resources
- Competitive costs - Effective asset utilization
• Promote maximum participation of private sector in:
- Natural gas - Chemicals and petrochemicals- Refinery streams derivatives - Orimulsion- Coal
• Best practices in Health, Safety & Environment Protection.
PDVSA
Business Plan 2000-2009
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 19
0
1000
2000
3000
4000
5000
6000
00 02 04 06 08
5800Th BD
3955New AreasOwn Effort.
Operating Agreements
Own Effort
Profit Sharing Agreements
Orinoco Oil Belt
Production Capacity
PDVSA’s Business Plan considers a steadygrowth in production capacity
Business Plan 2000-2009
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 20
Exploratory AreasOil (Million Barrels) / Gas (TCF)
CARIBBEAN SEA
150.000 Km2
150.000 Km2
100.000 Km2
60.000 Km2
13131313 61616161
7777 22222222
10101010 47474747
6666 6666
Significant opportunities to incorporate new oil Significant opportunities to incorporate new oil and gas reservesand gas reserves
Significant opportunities to incorporate new oil Significant opportunities to incorporate new oil and gas reservesand gas reserves
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 21
Strategic Associations: heavy oil upgrading projects
PDVSAPDVSA
32%32%
52%52%
FinancingFinancing
16%16%
Investments 2000 - 2009:Investments 2000 - 2009:
0
100
200
300
400
500
600
700
2000 2 4 6 8 2010
622
158
HAMACA
SINCOR
CERRO NEGRO
PETROZUATA
Production Th BDProduction Th BDProduction Th BDProduction Th BD
PartnersPartners
Orinoco Oil Belt:a succesful
development of huge extra-heavy oil reserves
( 10-12° API)
Reserves: 217 Bn BLs
Business Plan 2000-2009
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 22
Exploration and Production
22%
Operating Operating AgreementsAgreements
22%
9%8%
39%
StrategicStrategicAssociationsAssociations
Profit SharingProfit SharingAgreementsAgreements
ExplorationExplorationOwn effortOwn effort
Production Own EffortProduction Own Effort
Investments 2000-2009: 36 - 38 Bn $
PDVSA’s Share : 55% PDVSA’s Share : 55%
PDVSA’s Share : 55% PDVSA’s Share : 55%
Business Plan 2000-2009
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 23
Refining
OperationalOperationalContinuityContinuity
ProductProductQualityQuality
Environment Environment & Safety& Safety
DeepDeepConversionConversion
37%37%
47%47%
13%13%
3%3%
Investments: 2,0 - 2,7 Bn $Investments: 2,0 - 2,7 Bn $Investments: 2,0 - 2,7 Bn $Investments: 2,0 - 2,7 Bn $
Business Plan 2000-2009
Most investments are dedicated to environmental related projects
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 24
0
5000
10000
15000
20000
25000
30000
99 01 03 05 07 09
Th TYTh TYTh TYTh TY
MODULE 3MODULE 3MODULE 3MODULE 3
MODULE 2MODULE 2
EXISTING CAP. EXISTING CAP.
Volumetric Expectations
Strategic Guidelines
First module wholly utilized - 6.5 MM T/year capacity Second and third module to be developed mostly by
private investors ($1 Billion Approximately)
Orimulsion®
Business Plan 2000-2009
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 25
Total Investments
38%38%
FinancingFinancing
24%24% 34%34%
4%4%
PDVSA equity in PDVSA equity in AssociationsAssociations
PDVSAPDVSAOwn EffortOwn Effort
Partners SharePartners Share
BusinessBusiness
Plan 2000-2009:Plan 2000-2009:
U.S.$ 50 - 55 Billion U.S.$ 50 - 55 Billion
•Exploration & Production •Profit Sharing•Orinoco Oil Belt Assoc.•Operating Agreements•PDVSA
•Refining•Natural Gas•Chemicals•Other sectors
6913141131
49
153
%%
PDVSA SHARE: 42%PDVSA SHARE: 42%
PDVSAPDVSA
PC2000_10 BUSINESS PLAN ./ 26
Summary
PDVSA´s Business Plan is based on:PDVSA´s Business Plan is based on:
Venezuela´s large resources endowmentVenezuela´s large resources endowment
Venezuela comparative and competitive Venezuela comparative and competitive advantagesadvantages
Strong financial fundamentalsStrong financial fundamentals
Great opportunities for private investmentGreat opportunities for private investment